Bangladesh on the verge of financial bankruptcy, debt reaches Rs 8.70 lakh crore

New Delhi – Bangladesh’s economy is in a state of collapse under the burden of a debt worth USD 104.48 bn, or about 8 lakh 70 thousand crore rupees. Due to political instability and increasing violence, the country is on the verge of bankruptcy. Due to a decrease in revenue and low investment, the Government treasury has emptied. Many industrial companies are leaving Bangladesh. The situation is becoming more serious as the debt is increasing at a rate of about 14%. In such a situation, Bangladesh is taking a tough stance against India, and the atmosphere has also become tense due to the attacks on the Hindu community in the country. Bangladesh has also suspended visa services to India.

Fulfilling India dependent needs

India and Bangladesh trade extensively; but Bangladesh is putting itself in a difficult position due to its current strategic stance. A large share of wheat, rice, sugar, onion, potato, spices, fruits, vegetables, cotton, medicines, fuel and even electricity consumption of Bangladesh is imported from India. In the financial year 2022-23, trade between the two countries was about $16 billion (Rs. 13.48 lakh crore). India buys about $2 billion (Rs. 166 lakh crore) of goods from Bangladesh, while exports are more than $14 billion (Rs. 11.62 lakh crore). Apart from this, India has provided about $8 billion (Rs. 6.64 lakh crore) in financial assistance, from which roads, railways and ports have been built.

India’s major role in electricity supply

India accounts for about 17% of Bangladesh’s total electricity generation. This means that if the supply from India stops, the country’s industries and daily life will be massively disrupted. About 1,500 MW of electricity is supplied daily by a private establishment in India.

Can the system work without India ?

Bangladesh is ignoring its dependence on India while taking anti-India stand with the support of countries like China and Pakistan; but with almost its entire border connected to India and a large share of its daily needs, it is difficult to maintain a distance from India for a long time.

India is vital for the economy

In fact, India is the main supplier to Bangladesh’s economy. If India withdraws its support, inflation and unemployment will increase in the country, while production will also decrease. It is difficult to get goods from any other country at such a low price compared to the low price at which India supplies Bangladesh.

The textile industry is the biggest strength

Bangladesh’s economy is mainly based on the textile industry. Clothes made with cheap cotton from India are exported all over the world. India sells about 35% of its cotton and jute products to Bangladesh. If this supply stops, the textile industry will collapse, and the economy will suffer a major blow. It is estimated that the Bangladeshi economy has lost about Rs 2 lakh crore since August. In such a situation, it will be difficult for Bangladesh to remain stable without India.

Editorial Perspective

In return for the aid that India is providing Bangladesh with, India can easily pressurize it to protect the Hindus there. The question is why India hasn’t done that till now.